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Vaughn Lee Andrews-McKay – Pruco Securities – Investigation

According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred Vaughn Lee Andrews-McKay on May 3 from the securities industry. According to the Letter of Acceptance, Waiver and Consent, Andrews-McKay allegedly converted $47,748.19 from two Firm clients.

FINRA alleges Andrews-McKay first converted $29,648.19 from two firm clients, while working at Pruco Securities. Further, FINRA alleges Andrews-McKay used false pretenses to convince the clients to write personal checks to him that he claimed he would use to satisfy certain financial obligations of theirs. Instead, McKay purportedly deposited the checks into a bank account he controlled, and used the funds for his own personal use.

From July through October 2017, Andrews-McKay allegedly converted an additional $18,100 by writing checks to himself from one client’s checking account without their knowledge or permission, and purportedly forging a signature on the checks. Andrews-McKay reportedly deposited the checks into a bank account he controlled, and allegedly used the funds for his own personal use.

According to his BrokerCheck report, Andrews-McKay was registered with Pruco Securities LLC in Shelton, CT from August 2015 until he was fired in May 2018 because “ Registered representative misappropriated funds from two clients, forged a client’s signature on multiple checks taken from her, did not disclose a gift from a customer, and did not disclose an outside business activity.”

For FINRA’s full finding see FINRA Case no. 2018058343001.

Failure to Supervise

Brokers are prohibited from engaging in underhanded businesses practices that violate securities laws and regulations. They have a fiduciary duty to make investment recommendations that are consistent with the clients net worth, investment experience and objectives. Risk tolerance, age, and liquidity needs also need to be considered.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Are you concerned about your investments with financial advisor Vaughn Lee Andrews-McKay? If so, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.